Traditionally, buyers tend to hold out until spring – the industry’s peak selling period – so that they can take full advantage of the influx of properties to market. But with favourable lending conditions and lower prices across most cities, industry experts say that holding out may not be the best buying strategy. We weigh up why buying now will give you a better bang for your buck.
Beat the spring rush
Real estate agents often advise their vendors to hold off on selling until spring. It’s the best time to showcase property features, and the gardens are at their finest. Most buyers like to wait until spring to see what comes to market, but that means more competition and ultimately a higher sale price. And this spring is shaping up to be no exception.
According to Domain, auction clearance rates have hit the highest point in more than a year. They reported that the 60 per cent result for June was up on May’s 54 per cent clearance rate and well above the lows of late 2018. Domain also states that although low auction numbers suggest the market is still relatively weak, auction volumes may start to increase as prices stabilise. Therefore, buyers are best to get in now before the frenzy of spring.
Favourable lending conditions
The recent RBA interest rate cut of 1.25 per cent to a historic low has put buyers in a great position to borrow more. Lenders have passed on some, if not all, of the cut to their customers, so now is the perfect time to shop around for the best deal.
“Finances can take a while to be approved, so now is the best time to get organised. Have your pre-approval in place so that you can act quickly when the right property comes up,” says Nick Boyd, Head of Sales and Business Development for Belle Property.
Better buying opportunities
With fewer buyers around real estate agents are more motivated to sell. It can also mean more favourable sale terms for the buyer.
Yourmortgage.com.au explains that winter is a prime time for property buyers because properties that are up for sale during this time of year usually suggests that the vendor is hoping for a quick sale.
“When the vendor needs to sell quickly, they are more willing to compromise on the terms and conditions of the sale. This gives the purchaser the upper hand at the negotiating table, from the final sale price to the length of the settlement period,” explains Nick.
Although you can negotiate better terms of sale, Nick warns off settling for a property that doesn’t tick all your boxes, just so you can get a good deal. Instead, Nick recommends buyers should look for properties that present great opportunities.
“Shop around and do your research as most cities are still reporting lower prices. Now is your chance to buy into blue-chip areas or a neighbourhood that you may have been priced out of before,” says Nick.